SOFTS-Coffee swings below 2-yr high, sugar eases from 4-mth high
* Arabica premium over robusta at 2-year high
* Raw sugar falls from 38.2 pct Fibonacci retracement
* Industry buying underpins cocoa (Updates closing coffee/sugar prices)
By Marcy Nicholson and Sarah McFarlane
NEW YORK/LONDON, March 6 (Reuters) - Arabica coffee futures on ICE remained volatile on Thursday, dropping from the previous session's steep two-year high on profit-taking as parts of top grower Brazil received much-needed rain, though forecasts for dry weather limited losses.
Raw sugar on ICE Futures U.S. pared gains after rising to a four-month high and hitting chart-based resistance, while cocoa was little changed.
Unseasonably dry Brazilian weather in January and February, and consequential production concerns have propelled arabica coffee prices up by around 76 percent since the start of the year, taking dealers by surprise. On Wednesday, the market closed above the psychological $2 per lb level for the first time in two years.
"We've gone over $2 now and we're seeing some specs willing to take some money off here. Commercials are more willing to sell here as well, and we're seeing that reflected," said Jack Scoville, a vice president at Price Futures Group in Chicago.
ICE second-month arabica futures fell 6.85 cents, or 3.4 percent, to close at $1.9555 per lb, below the two-year high of $2.0410 hit the previous session. The contract remained overbought at around 74 on the 14-day relative strength index. That was down from 88 reached on Monday, the highest level since 1994. Continuación...